PP $210kDP $15kRequired roof repair $15kInspection currently taking place this morning so unknown additional repair costsCurrent rents $2345 Owner paid W/S/G & exterior electric $544taxes $2200 /yrInsurance (awaiting accurate quote) estimated $1200/yrSeller financing $195k at 5.85% 5 year balloon amortized over 30 years with monthly payment of $1150.

I felt like I'd be able to wholesale the home for $10-20k or flip it with unknown comps for maybe $30-40k.

Particularly with unrelated parties, there are so many more unknowns and situations that can arise that the saying is true... you get what you pay for. 

The biggest struggle I face is all the unknowns.

The big thing is tying up your house to an unknown when you want to sell.Imagine if you signed a lease option in 2007 for 3yrs. 

@David Cruice, looking at some multi family units in New Mexico, do you have a few tips to pass on to a new investor Possibly some Unknown’s that may come up or what are the most critical things to look for, what % does the city ratings/crime statistics have with determining the value of the investment?

When I’d deal in SFH I’d fill out “unknown” to EVERYTHING.

If you buy a distressed property (taking a risk of unknown problems, time delays) you will receive more reward.The other issue to consider is no one works for free and the people who set up the turn key want to make money.  

:)  I also hear of a lot of challenges getting mortgages as a Canadian Citizen, Setting up your corporations right, the exchange rate keeps you on your toes, and the unknown of what a downturn in the market looks like are enough to make us research a little harder before we just jump down there. 

My biggest unknown is not really knowing a lot of people who specialize in this space (i.e. attorneys, CPAs, general contractors), but asking around is how I got into my first JV.